I think you could do a simple test to determine if your MD unit is
passing an unaltered digital signal or not, assuming you have DTS
capability.
Put a DTS CD in your CD player, pass the signal through your MD
recorder, then attempt to decode the DTS signal after it's been
through the MD unit. If it works, you're getting a pure signal. If
it doesn't, you're not.
(Haven't tried this yet myself.)
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